Thoughts on taking out a TSP loan to pay off 17K in credit card …

Aug 17, 2024 · Figure out how many months it would take to pay off that debt, multiply the months that it would take to pay off that debt by your interest rates, and if it's higher than the interest …

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Is It Ever A Good Idea To Take Out A TSP Loan? : R/personalfinance

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Example: $10,000 in credit card debt @ 18%. To pay off in 10 years, your payments would be 180 dollars. If taking out a loan and keeping same payment (current interest rates on TSP loans …

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Should You Take A TSP Loan? The Ultimate Guide - FedSmith

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Oct 26, 2023 · For example, if an emergency comes up and you can either take a TSP loan or be forced to put the expense on Credit Cards at 20% or a personal loan at 12%, then a TSP loan …

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A TSP Loan: Worst Idea Ever? - Barfield Financial

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Jan 20, 2020 · 1. $2,000 opportunity cost at 8% a year compounded for 20 years equals $9,500. This is the amount we mentioned above when we figured how much Megan would lose in …

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TSP Loan To Pay Off Credit Card? : R/personalfinance - Reddit

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I’m a 39 year old federal employee making $65k with approximately $88k in my TSP. I have around $10k in credit card debt spread various cards that I really want to eliminate once and …

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Withdrawal Of TSP Funds To Pay Off Credit Card - Ask The Experts: …

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Apr 4, 2017 · I just need a way to pay down or pay off this massive credit card debt. My TSP account is small (only $68,000) so it really isn’t going to help me in retirement, which is in four …

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Should I Pull My TSP To Pay Off Debt? : R/fednews - Reddit

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I got a 42k personal loan at 12% interest and will have it paid off in 3 years. I paid 70% of my credit card debt off with it and the remaining balance I transferred to a 0% interest credit card …

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FAQs about Thoughts on taking out a TSP loan to pay off 17K in credit card … Coupon?

When should I use a TSP loan?

The first situation that it may make sense to use a TSP loan is to pay off high-interest loans such as credit cards. In many cases, credit card interest can be 15%-20% while the current interest rate on a TSP loan is 1.375% (as of 3/30/21). Not to mention that any interest that you do pay on a TSP loan just goes back into your account. ...

Should I use my TSP to pay off debt?

We have seen people swear over and over again that they will only use their TSP to pay off debt one time. Five years go by and they are in the same financial position as they were originally and the answer is once again to use the TSP to pay down debt. Please, do not swear that this will not be you. It can be you. ...

Should I use a TSP for credit card debt?

I would only consider using the TSP for debt when you are fully committed to not accumulating more credit card debt. A high deductible health plan or HDHP can be a great way to save money in premiums, but as the name suggests the deductibles are high. ...

Should I get a TSP If I have bad credit?

This can be even more stressful if bad credit prevents you from getting a loan at a reasonable rate. In these situations, it can sometimes make sense to access the TSP to avoid more high-interest debt. But as always, we should always do whatever we can to not put ourselves in this position in the first place. ...

What happens if you don't pay off a TSP loan?

If you haven’t paid off the loan by retirement there are two options: While the processing fee will only be $50 or $100, the true cost of a TSP loan is often much higher. While your money is out on loan to you it is not in your TSP growing. For example, if you took out $30k for 5 years it might’ve grown to $50k had it been left in the TSP. ...

How much can I borrow from my TSP?

The maximum loan amount you can take out of your TSP is determined by logging onto your TSP and clicking “TSP Loans” on the lefthand side of the screen. You cannot take out more than 50% of your balance, unless the TSP adopts the CARES Act provisions. ...